credit assessment
Borrower reliability analysis
Credit assessment is the process of evaluating a borrower's ability and likelihood to repay a debt.
Lenders examine income, existing debts, payment history, and credit scores to determine risk: The bank's credit assessment took two weeks.
The term applies to individuals seeking loans and to businesses or governments issuing bonds.
A favorable credit assessment typically means better interest rates.
- fair lendingNondiscriminatory loan provision
- bad debtUnrecoverable money owed
- debt-to-income ratioPayments divided by earnings
- cash flow analysisEvaluating monetary movement patterns
- creditworthinessAbility to repay debts
risk profile · stress testing · financial audits · underwriting · financial statements · due diligence · fraud detection · red flag · risk tolerance · consumer protection laws · payment history · loan approval · blockchain technology · contingency planning
credit assessmentdebt collection
Pursuing owed payments
foreclosure · repossession · charge-off · bankruptcy proceedings · account closure
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